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Hero Electronix Pvt. Ltd, the electronics and technology arm of the Hero Group, has acquired the Indian operations of TES DST Holding Europe, a German electronics design services company.

The acquisition will mark Hero Electronix’s entry into the designing and manufacturing of innovative products in domains such as automotive and avionics, the Indian company said in a statement. It didn’t disclose financial details of the deal.

The company said it acquired the business through Bangalore-based Tessolve Semiconductor Pvt. Ltd, in which it had bought a strategic stake in April.

Hero Electronix founder-director Ujjwal Munjal told the Press Trust of India that the new division, to be called Tessolve Embedded Systems (TES), will help design and manufacture electronic products for global companies by bringing together capabilities in chip design, system design and embedded software. Tessolve also plans to strengthen its capabilities in analog chip design, he said.

Munjal said that TES will be the innovation lab for companies, including startups, working on the Internet of Things technology. “The aim would be to offer complete product development life cycle solution, from idea conceptualisation to product development and manufacturing,” he said.

Hero Electronix chairman Suman Kant Munjal said the acquisition is another step towards building the company into a $1 billion global digital products and solutions enterprise through investments in engineering-led and IP-driven businesses.

Hero Electronix, which was launched in 2015, marked the Delhi-based Hero Group’s entry into the electronics and technology segment. The company, which has a revenue target of Rs 800 crore for the financial year 2016-17, had last year acquired Mybox Technologies, which makes set-top boxes in India.

The $5 billion Hero Group has presence in over a dozen business verticals, with its two-wheeler firm Hero MotoCorp Ltd being the flagship. Hero MotoCorp is controlled by the Munjal family, which holds a 34.6% stake in the company.

Hero MotoCorp, India’s largest two-wheeler maker, in April sold a 49% stake in its Colombian operations to its US partner as part of an agreement inked in 2014.